Clifton, N.J. Linens 'n Things announced that Robert DiNicola has submitted his resignation as executive chairman of the company. He has agreed to remain a member of the board of directors and serve as non-executive chairman of the board pending solicitation and approval of the plan.
"Bob DiNicola has been an important part of LNT’s restructuring efforts and one of the reasons why we expect to be able to complete our restructuring in such a short timeframe," said Michael Gries, chief restructuring officer and interim CEO.
In other news, the company announced Friday that it and its debtor subsidiaries have filed a plan of reorganization and disclosure statement with the United States Bankruptcy Court for the District of Delaware. A hearing regarding the approval of the disclosure statement will be scheduled by the court in the near future. LNT, which filed for Chapter 11 on May 2, expects to emerge in early 2009.
The plan calls for the senior lenders to be paid in full and the holders of the Senior Notes to convert the majority of their debt into substantially all of the ownership of the reorganized LNT. Unsecured creditors will receive warrants to purchase common stock in the new company.